Issues with the world’s wheat crop in Russia, Canada and the EU has that commodity trading higher overnight. The wheat strength is not moving corn higher, but is giving it some support as corn trades unchanged this morning. Soybeans have bounced from yesterday’s losses and are trading 14 higher this am in response to yesterday’s crop conditions rating.
Yesterday’s crop conditions report showed corn drop 1% to 71% G/E compared to the five year average of 68%. Wisconsin came in unchanged at 81% G/E compared to the fiver year average of 74%. US soybeans dropped 3% to 67% G/E which is just above the 5 year average of 66%. Missouri continues to lead the trend lower with their corn crop rated 26% G/E and their soybeans at 34% G/E.
For those that say “we don’t matter” when it comes to production, but think the markets should be trading higher because of issues in Missouri here is something to consider: Missouri has ranked in the top ten for corn production just behind Wisconsin in 3 of the last 4 years.
Look for corn to trend sideways into Friday’s report when traders will find out how “BIG” the USDA is expecting this crop to be. Soybeans should remain steady to stronger headed into Friday provided we can avoid any news on the tariff front.
Have a Safe Day!